Marketing Management - Chapter 1
Marketing Management - Chapter 1
13th Edition
1
Marketing Management
Defining Marketing for the 21st
Century
Chapter # 1
2
What is Marketing?
3
What is Marketing?
4
What is Marketing Management?
5
Core Marketing Concepts
7
5 Types of Needs
Stated Needs – the customer wants an inexpensive car
Real Needs – the customer wants a car whose
operating cost, nor its initial price is
low.
Unstated Needs – the customer expects good service
from the dealer.
Delight Needs – the customer would like the dealer to
include an onboard navigation
system.
8 Secret Needs – the customer wants friends to see him
Demand States
Negative Irregular
Nonexistent Full
Latent Overfull
Declining Unwholesome
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Demand States
Negative Demand
A major part of the market dislikes the product and
may even pay a price to avoid it—vaccinations, dental
work, blood donations and operations, for instance.
Marketer’s task is to analyze why is it happening and
needs to offer marketing programs like – product
redesign, lower prices and positive promotions that
can change the attitude. Make it into their likings, etc.
10
Demand States
Nonexistent Demand
Target consumers may be unaware of or uninterested
in the product. Farmers may not be interested in a new
farming method, and college students may not be
interested in foreign-language courses.
Latent Demand
Many consumers may share a strong need that cannot
be satisfied by any existing product.
E.g. Web portal for the Tourism Industry of
Bangladesh.
12
Demand States
Declining Demand
Consumers begin to buy the products less frequently or
not at all. Every organization faces declining demand for
one or more of its products or services.
E.g. Jet Washing powder in comparison to Surf Excel.
Robin Liquid Blue in comparison to Ujala.
The Marketer must analyze the reason for decline and
must find a way (which can be redesigning the product
or service or even offering a completely new product or
service) to reverse the declining demand.
13
Demand States
Irregular Demand
Consumers purchases vary on a seasonal, monthly,
weekly, daily or even hourly basis. Many organizations
face demand causing problems of idle or overworked
capacity. E.g. – Cold drinks companies, ice cream
manufacturers, Water Kingdom during the Winter
Season. Umbrella, Raincoats, etc.
Marketing task called as synchromarketing, is to find
ways to alter the pattern of demand through flexible
pricing, promotion, and other incentives.
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Demand States
Full Demand
Consumers are adequately buying all products put in
the marketplace. Organization faces full demand when
they are pleased with their volume of business. E.g.
Cell phones – Nokia, Computer Accessories
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Demand States
Unwholesome Demand
Unwholesome products will attract organized efforts to
discourage their consumption. Un-selling campaigns
have been conducted against cigarettes, alcohol, hard
drugs, handguns and large families.
17
What is Marketed?
Experiences Persons
Places
Properties
18
What is Marketed?
Goods
Service
s
Experien
19 Event ces
What is Marketed?
Mark Zuckerberg Bill Gates
Person Organizati
s ons
Place Informatio
20 s n
What is Marketed?
Idea
s
21
Properti
es
Customer Value and Satisfaction
22
Exchange and Transaction
23
Exchange and Transaction
24
Who Purchases Products and Services?
Willingness to
Exchange
Sellers
25
A Simple Marketing System
26
Key Customer Markets
Consumer Markets
Business markets
Global markets
Nonprofit/Government markets
27
Key Customer Markets
Consumer Markets
Companies selling mass consumer goods and services
such as soft drinks, cosmetics, air travel, athletic shoes
and equipments spend a great deal of time trying to
establish a superior brand image. Much of a brand’s
strength depends on developing a superior product and
packaging, ensuring its availability and backing it with
engaging communications and reliable service.
28
Key Customer Markets
Business Markets
Companies selling business goods and services often
face well-trained and well-informed professional
buyers who are skilled at evaluating competitive
offerings. Business buyers buy goods in order to make
or resell a product to others at a profit.
Business marketers must demonstrate how their
products will help these buyers achieve higher revenue
or lower costs. Advertising can play a role, but the
sales force,
force price and the company’s reputation for
reliability and quality may play a stronger one.
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Key Customer Markets
Global Markets
Marketers must decide first which countries to enter, how to
enter each country (Export,
Export Licenser,
Licenser Joint venture partner,
partner
contract manufacturer,
manufacturer or solo manufacturer,
manufacturer etc.); how to
price their products in different countries; and how to adapt
their communications to fit different cultures.
They make decisions in the face of different requirements for
buying, negotiating, owning and disposing of property; different
culture, language, legal and political systems and currencies
that might fluctuate in value.
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Key Customer Markets
31
Company (Marketing) Orientations
32
Company (Marketing) Orientations
Production Concept
The Production Concept holds that the consumers will prefer
those products that are widely available and inexpensive.
- Managers of production-oriented businesses concentrate
on achieving high production efficiency, low costs and
mass distribution.
- Price of the products remains relatively low
33
Company (Marketing) Orientations
Product Concept
The Product Concept holds that consumers will
prefer those products that offer the most quality,
performance and innovative features.
- Managers in these organizations focus on making
superior products and improving them over time.
34
Company (Marketing) Orientations
Selling Concept
The Selling Concept holds that consumers, if left
alone will ordinarily not buy enough of the
organization’s products. The organization must
therefore undertake an aggressive selling and
promotion effort.
35
Company (Marketing) Orientations
Marketing Concept
The Marketing Concept holds that the key to achieving
organizational goals consists in determining the needs
and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than
competitors.
36
Company (Marketing) Orientations
37
Company (Marketing) Orientations
Society
(Human Welfare)
Societal
Marketing
Concept
Customers Company
(Want Satisfaction) (Profits)
38
Company (Marketing) Orientations
39
The Holistic Marketing Concept
40
The Holistic Marketing Concept
Internal Integrated
Marketing Marketing
Holistic
Marketing
Performance Relationship
Marketing Marketing
Sales
Revenue
Ethics
Brand & customer equity
Environment Customers Channel Partners
41 Legal Community
The Four P Components
of the Marketing Mix
42
4 Ps 4Cs
Product
Customer Solution
Price Customer
Cost
Place Convenience
Promotion
43 Communication
Marketing Management Tasks
44
The New Marketing Realities
46